Below is only peripherally related, posting mostly for giggles:
https://www.reddit.com/r/SuccessionTV/comments/k08dbs/five_million_is_a_nightmare/$5 million is a nightmare ??..a fuzzy logic there, but I understand the thesis:
"too much to keep working on a middle class salary and too little to be completely free as far as your spending is concerned".
So say you're working a normal $75-150K job, because $5M isn't quite enough for you and your family to live on and you still kinda need to work. It's pretty good, really, because, supplementing judiciously with investment income, you can have some real fun. But...
1. Your stock portfolio might easily swing up or down the entirety of your annual salary on any given day. An entire year of labor constitutes rounding error. How long do you keep the job?
2. Your boss is a dick. The company wants you to move. There've been layoffs, so your workload suddenly increases like crazy. The commute's a drag. You know you have $5M in the bank, and your annual salary is rounding error. The phrase "fuck you!" spills easily from your mouth. How long do you keep the job?
3. Inevitably, you quit, planning to lower overhead and survive on investment income. It works on paper, but then your kid needs braces and a new Macbook comes out and your house kinda needs painting and you have to hire a nurse for your elderly mom because you're too rich to put her in a nursing home. You won't stoically self-deny because you think of yourself as rich. So even if you're not splurging - no garage full of fancy sports cars - your wealth slowly diminishes, making starvation in retirement a real possibility, because you don't have the overhead of a normal person....and overhead is everything. Repeat:
overhead is everything.
Maybe just in sum the guy is wrong and does not seem to know what he is talking about since if his expected income is between $75k and $150, then with a 4% withdrawal rate he would ONLY need between $2 million and $4million.
This is how it goes for a 4% withdrawal rate:
$1 million = $3,333 per month and $40k per year
$2 million = $6,666 per month and $80k per year
$3 million = $10k per month and $120k per year
$4 million = $13,333 per month and $160k per year
$5 million = $16,666 per month and $200k per year
If his money is in BTC, with the 200-WMA, he would only need 64 BTC to reach the $2 million and then if he is ONLY withdrawing at 4%, the dollar value of his holdings is likely going to grow faster than his withdrawal of the BTC, so the BTC will keep up with inflation.. but yeah, he would have to have enough BTC in order to start such a process, and if he is in dollars and dollar-related investments, he might need closer to $4million to make sure that his investments keep up... but I doubt that he needs $5million, unless he is trying to cushion for increases in his income.. which surely in terms of dollars we are likely going to need into the future.. so we might have to take that into account if we are exercising a 4% withdrawal rate.
Poll
